Consumer sentiment again reached a new two-year low in June, with the Expectations and Current Conditions indices also at new two-year lows. The Consumer Price Index rose 8.6 percent year-over-year, still driven by continued increases in fuel and transportation costs.
Further adding to the inflation challenges faced by consumers, the Federal Reserve raised the key interest rate by 0.75 percent in the biggest hike since 1994. Supply chain pressures continue to be a major concern; and while, on the surface, consumer spending has been increasing, this is still being driven by rising prices and inflation pressures of core goods.
Many retailers are holding more inventory, and with the pullback in discretionary consumer spend, retailers are at risk of needing to be more promotional and discount/mark down product in the months to come.
Download the June retail and consumer summary.
Download previous summaries from 2022:
Find out more at the BRG Retail Insights blog.